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Lend Lease is also responsible for land remediation at Barangaroo South, except for contamination from the Jemena gas works.

Lend Lease said it had capped its responsibility.

The Auditor-General’s report did not put a number on the value share payments.

Lend Lease and the government’s Barangaroo Development Authority will each have a half share in the building’s land value after the fixed payments and a development profit for Lend Lease have been deducted.

The Auditor-General said the payments were less certain because they were based on the market valuations of the last buildings to be constructed in eight to 10 years.

However, he suggested that current estimates might be conservative and underestimate ultimate payments.

Lend Lease’s group head of development, David Hutton, said that a larger value share would be to the benefit of both Lend Lease and the government.

“We priced Barangaroo so it would achieve the Lend Lease metrics with minimum land payment plus a value share so that both parties, the government and Lend Lease, participated in the success,’’ he said.

If the $1 billion land payment figure is correct, Lend Lease will be paying just over 15 per cent of the project value in land.

There are also other costs. The group has already disclosed that it expects about $3 billion worth of construction work on the project. On top of that would be range of other development costs, including finance.

Public submissions on the government’s “Short-sharp" inquiry into Barangaroo closed yesterday.